FTI Consulting Survey Identifies Renewed Optimism as Healthcare & Life Sciences Sector Embarks on 2025

Rhea-AI Summary

FTI Consulting's Healthcare & Life Sciences Industry Outlook 2025 reveals renewed optimism in the sector, with 79% of leaders feeling positive about the industry's financial outlook, an 11% increase from last year. The survey indicates strong growth potential, with 66% of leaders expecting higher M&A activity and 40% anticipating improved capital raising capabilities.

Key investment areas include obesity treatments, immuno-oncology, gene editing, and AI-powered drug discovery. The survey identifies major challenges: economic uncertainty (38%), cybersecurity (23%), and political uncertainty (22%). In response to increasing cybersecurity threats, 68% of organizations have implemented crisis communications plans, and 53% have conducted crisis simulations.

Regarding the U.S. political landscape, nearly 60% of respondents believed a second Trump administration would positively impact their business, with expectations of reduced federal regulations and a more favorable deal-making environment.

79% of Industry Leaders Feel Optimistic About Industry’s Potential

Economic Uncertainty, Cybersecurity Incidents and Political Uncertainty Seen as Key Challenges

Industry Increasingly Investing in Cybersecurity Preparedness

WASHINGTON, Dec. 19, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the results of its U.S. Healthcare & Life Sciences Industry Outlook 2025, which found that after years of tempered expectations, 79% of leaders are increasingly optimistic about the industry and its financial outlook, up 11% from last year’s survey.

According to the survey, 66% of leaders expect higher M&A activity in 2025 and 4 in 10 respondents expect a greater ability to raise capital, up 10% from last year. The increasing confidence in dealmaking and fundraising is a strong indication of the industry’s renewed optimism going into the coming year.

“After years of speculation and tempered optimism, M&A activity is expected to increase in 2025, as companies predominantly look to acquire viable, late-stage assets in order to grow their pipeline and accomplish their business objectives,” said Robert Stanislaro, a Senior Managing Director and Head of the Healthcare & Life Sciences’ Corporate Reputation offering within the Strategic Communications segment at FTI Consulting. “Particular areas of investment include the rise of obesity treatments, an increased focus in immuno-oncology, gene editing and AI-powered drug discovery. The growing optimism amongst industry leaders and key stakeholders opens up the opportunity for companies to position themselves as innovators in the field and rise above the crowded marketplace.”

Looking at potential risks and challenges, those surveyed cited economic uncertainty (38%) as the biggest liability facing the industry, followed by cybersecurity (23%) and political uncertainty (22%). Notably, political uncertainty rose in prominence this year as leaders reflected on the potential implications of the U.S. presidential election.

While the survey was conducted prior to the results of the U.S. presidential election, the findings provide insights into how the industry may be preparing for a second Trump administration. In October 2024, nearly 6 in 10 respondents stated that a potential Trump administration would have a positive impact on their business.

“As the industry prepares for a second Trump administration, leaders should expect to see a focus on reducing federal regulations, promoting market-based solutions and competition through a more favorable deal-making environment, addressing the cost of prescription drugs, and decreasing federal involvement in health coverage,” said Lauren Crawford Shaver, Americas Head of Healthcare & Life Sciences within FTI Consulting’s Strategic Communications segment. “While some changes could be implemented via executive orders, other major reforms would require congressional support and face substantial political hurdles. In light of this, industry leaders need to not only monitor but also grow their political relationships at the local, state and federal level.”

Cybersecurity incidents have become increasingly prevalent across the industry. With that, executives are becoming more familiar with the reputational and operational challenges these situations pose and are preparing accordingly. Sixty-eight percent of respondents said they have a crisis communications plan in place and 53% have participated in a crisis simulation, up 13% and 37% from 2024, respectively.

The full survey report is available here.

About the Survey
This research was conducted online by FTI Consulting’s Strategic Communications segment between September 24 – October 9, 2024, with 250 decision-makers in corporate communications, investor relations, public affairs, business development and marketing for healthcare and life sciences companies in the United States. Forty-three percent of respondents represent large companies (with more than 250 employees), and roughly one third (35%) represent publicly listed companies with a weighted average $5 billion market cap.

About FTI Consulting  
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,300 employees located in 34 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $3.49 billion in revenues during fiscal year 2023. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. More information can be found at www.fticonsulting.com.

FTI Consulting, Inc.
555 12^th Street NW
Washington, DC 20004
+1.202.312.9100

Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contact:
Matthew Bashalany
+1.617.897.1545
matthew.bashalany@fticonsulting.com

FAQ

What percentage of healthcare leaders are optimistic about FCN's 2025 industry outlook?

79% of healthcare leaders are optimistic about the industry outlook for 2025, showing an 11% increase from the previous year.

What are the top 3 challenges facing the healthcare industry according to FCN's 2025 outlook?

The top three challenges are economic uncertainty (38%), cybersecurity (23%), and political uncertainty (22%).

How many healthcare companies have implemented crisis communication plans according to FCN's survey?

68% of companies have implemented crisis communications plans, with 53% having participated in crisis simulations.

What percentage of healthcare leaders expect increased M&A activity in 2025?

66% of healthcare leaders expect higher M&A activity in 2025.

What are the key investment areas identified in FCN's Healthcare Industry Outlook 2025?

Key investment areas include obesity treatments, immuno-oncology, gene editing, and AI-powered drug discovery.

How many healthcare leaders expect improved capital raising abilities in 2025?

4 in 10 respondents (40%) expect a greater ability to raise capital, representing a 10% increase from the previous year.